Seiko Epson Corporation

Epson to Participate in the United Nations Global Compact

On July 16, Seiko Epson Corporation ("Epson") joined the United Nations' Global Compact, whose universal principles include respect for human rights, labor, the environment, and prevention of corruption, all causes strongly espoused by the UN. This even took place after Epson's president presented the UN Secretary General with a communique affirming support for the Global Compact, and the Secretary General accepted the president's message.

The practice of trust-based management has historically been a basic underpinning of Epson's business activities. Beyond simple adherence to the law and code of corporate ethics, the company considers trust-based management to be at its very core as it seeks to earn the trust of its stakeholders and contributes to achieving a better society.

At the end of May of this year, Epson responded to a heightened level of requests relating to corporate social responsibility (CSR) by launching a Trust-based Management (CSR) Promotion Committee with the aim of investigating the nature of trust-based management and strengthening the company's response. Chaired by an executive vice-president, this committee comprises department heads and section heads from Head-Office departments primarily responsible for management control, legal affairs, human resources, the environment, labor safety, quality, corporate communications, information management, etc. Also, on July 1, the company established a CSR & Global Environmental Policy Department, supplanting the previous Global Environmental Policy Department, as a company-wide secretariat for driving CSR activities. Epson's motivation to participate formally in the Global Compact was its desire to broadcast its commitment to strengthened CSR efforts.

Going forward, Epson will endeavor to make the ten principles of the Global Compact well known throughout the company (the addition of "prevention of corruption" in June 2004 brought the total number of principles to ten), and will proactively publicize its efforts related to these principles.

What is the Global Compact?

In January 1999, while attending the World Economic Forum in Davros, Switzerland, United Nations Secretary General Kofi Annan enunciated the Global Compact, which was formally launched at the UN headquarters in New York City in July 2000. The Global Compact comprises ten principles, grouped into four fields-human rights, labor, environment, and anti-corruption-and seeks adherence from companies in participating countries. By participating in the Global Compact, each company participates in a concerted effort to solve various problems arising in the world economy, taking responsibility for efforts on its own initiative, and aiming for the attainment of a sustainable society.
Over 1,700 companies-including 17 in Japan-currently participate.

The Global Compact - The Ten Principles

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: Make sure that they are not complicit in human rights abuses.

Labor Standards

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labor;
Principle 5: The effective abolition of child labor; and
Principle 6: The elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Encourage the development and diffusion of environmentally friendly technologies

Anti-Corruption

Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.

For more details about the Global Compact, please see the following URL: http://www.unglobalcompact.org/